CTS Global earnings fall amid market volatility – Manila Bulletin

Listed equity brokerage firm CTS Global Equity Group, Inc. reported a 29.9% decline in net profit to P20.1 million in the first quarter of 2022 due to lower revenues.

In a statement to the Philippine Stock Exchange, the company said revenues fell 56.7% to 38.4 million pesos in the first quarter of the year compared to the same period in 2022, but they were 68.1% higher than the previous quarter.

Global CTS

“Revenue declined due to lower proprietary trading gains due to global equity market conditions,” CTS Global said.

The cost of services decreased by 66.8% to 14.5 million pesos compared to the previous year, largely due to lower commission expenses, personnel costs and transaction costs for carrying out commercial transactions for own account.

Meanwhile, operating expenses, which are largely fixed in nature, also fell 21.0% to 6.0 million year-on-year. This pushed net margins up from 32.3% in 2021 to 52.4% in 2022.

“For the first quarter of 2022, CTS Global Equity’s major markets experienced high volatility,” the firm noted.

The benchmarks of the United States, Hong Kong and the Philippines posted returns of -5.2%, -6.0% and +1.4% respectively in the first quarter.

Compared to these benchmarks, CTS Global returned 7% over the same period.

The company’s revenue breakdown across the markets it operates in shows that the majority of revenue comes from the Philippine market at 57.2%, while global trade revenue contributed 42.8% of total revenue.